Factory job growth hits 5-year peak as US manufacturing expands in October

The American manufacturing sector continued its expansion in October, marking the 10th consecutive month of growth following a prior 10-month contraction, according to reports from S&P Global and the Institute for Supply Management (ISM).

ISM's purchasing managers' index (PMI) registered 55.5%, near a 12-month high and above the 47.5% threshold that generally indicates economic expansion. All five PMI subindexes—new orders, production, employment, supplier deliveries, and inventories—were in expansion territory.

Five of the six largest manufacturing industries also expanded in October, ISM reported. Meanwhile, S&P Global's manufacturing PMI stood at 54.9, indicating growth comfortably above trend, though slightly lower than September's 52-month high of 55.9.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that the US manufacturing sector is experiencing its best growth since early 2022. However, he highlighted challenges such as supply chain disruptions and delivery delays, especially for AI-related goods and equipment, as factories strive to meet strong demand.

The strong demand has driven factory hiring to levels not seen in over five years, reflecting the sector's robust growth and labor market expansion.